Quote:
Originally Posted by ValKehl
Bob, I was 99.9% certain that after I commented about cash-basis taxpayers, you would respond with a dissertation re cash basis vs. accrual basis, and I wasn't disappointed.
Although my comment may come across as "snarky," I truly appreciate and respect your immense knowledge of taxation and the governmental regulations pertaining thereto. While an accountant for most of my career, I never got much into taxes, so I only know enough about taxes to be "dangerous." Hence, I also truly appreciate your many efforts enlighten all of us with your tax knowledge. And, I enjoy reading whatever you post re any topic because of you excellent writing skill.
You mentioned that, "there is also the possibility that some people think such a trade isn't taxable because it is considered as a like-kind exchange, where the tax liability is deferred, but under current tax law, like-kind exchanges only apply to real estate." I resemble your remark in that I never realized that a cashless trade is taxable. I guess the real property lobby has been a much stronger influencer on Congress than the personal property lobby (if there even is such an organization).
|
Val, LOL I never take anything you say as snarky. And I know I usually write too much in responses like that, but as you know, when it comes to taxes the easy, quick answers often leave out very important points and details.
Very often when someone asks a tax related question on the forum relating to our hobby, I see a lot of partial, or even misguided and incorrect, responses that someone that doesn't know better puts out there for all to see, even though their intentions are well meaning and/or they truly thought they knew the correct answer. I just don't want to see someone reading another person's well meaning, but incorrect responses, and then use such not entirely correct info to make some potentially bad decisions tax-wise, in regards to the hobby and their collections.
I certainly don't know everything when it comes to taxes, but as a practicing CPA/accountant for over 40 years, I hope by now I know a little more than the average person. LOL And don't ever feel bad that even though you worked as an accountant in your career that you never really got into the tax side of things. I've had CPAs that I did income taxes for because they never got into into the tax side of the profession. Heck, when I first got out of college I went to work for one of the old Big Eight firms, Peat, Marwick, Mitchell & Co. (they are now called KPMG and still going strong) in their Cleveland office, and we used to joke about how it seemed none of the audit partners in the firm could even do their own taxes. A lot of people often think that someone who is a CPA/accountant automatically knows everything about income taxes, accounting, auditing, estates, business consulting, and so on, and don't realize the extent and degree of specialization that actually occurs in the profession.
I always figure that even if just a single person reading one of my "dissertations" gets some useful and helpful tax or business info out of it, then it was worthwhile. And occasionally people have PM'd me on different tax/business issues and topics I've brought up in my posts, and in a few rare instances I've even followed up with a few inquiring people via phone for additional guidance. Talking is a lot faster and easier than always having to type everything out, believe me. LOL Hopefully you (and everyone else) now know a little something more about how trades are at least supposed to be handled for tax purposes.
Anyway, happy holidays and happy New Year to you and yours!
